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Exhibit 99.1
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HOLLINGER INC., HOLLINGER INTERNATIONAL INC., AND ITS AFFILIATES
ANNOUNCE THE COMPLETION OF THE SALE
OF CANADIAN ASSETS TO CANWEST GLOBAL COMMUNICATIONS CORP.
TORONTO- NOVEMBER 16, 2000: Hollinger Inc. (TSE: HLG.C), Hollinger
International Inc. ("Hollinger") (NYSE: HLR), Southam Inc. and Hollinger
Canadian Newspapers, Limited Partnership ("Hollinger L.P.") (TSE: HCN.UN)
announce that the sale announced on July 31 of Canadian newspaper and related
assets to CanWest Global Communications Corp. ("CanWest") (NYSE: CWG; TSE, WSE:
CGS.S and CGS.A) has been completed. Included in this sale were:
o a 50% interest in the National Post;
o Hollinger's metropolitan and a large number of its community
newspapers in Canada (including the Ottawa Citizen, Vancouver Sun,
the Province, the Calgary Herald, the Edmonton Journal, the
Montreal Gazette, The Windsor Star, The Regina Leader Post, the
Star Phoenix and The Victoria Times-Colonist); and
o Hollinger's operating Canadian Internet properties including
canada.com.
The parties made minor modifications to the original terms of the
transaction removing from the sale the Southam Magazine and Information Group
and two paid dailies in Ontario (The Sarnia Observer and the Chatham Daily
News).
The aggregate sale price of these properties was approximately CDN $3.2
billion (US $2.1 billion), plus interest and subject to adjustments. The sale
and a related transaction resulted in the Hollinger group receiving
approximately CDN $1.8 billion (US $1.2 billion) cash, approximately CDN $685
million (US $443 million) in shares of CanWest valued for these purposes at CDN
$25.00 per share (representing an approximate 15.1% equity interest and 5.7%
voting interest) and subordinated debentures of a holding company in the CanWest
group having
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an aggregate principal amount of approximately CDN $770 million (US $500
million) bearing interest initially at 12 1/8% per annum. Hollinger has applied
a portion of its cash proceeds to repay all of its bank debt and certain other
debt of approximately CDN $1.5 billion (US $1.0 billion).
Hollinger L.P. received on closing its pro rata share of the aforesaid
sale proceeds (being approximately CDN $1.0 billion) in the form of
approximately CDN $560 million cash, approximately CDN $207 million CanWest
shares and CDN $235 million principal amount of CanWest subordinated debentures.
From its cash proceeds of this sale and the recent sale of Novalis, Hollinger
L.P. has established a reserve for sale contingencies and declared a special
cash distribution of CDN $3.10 per unit (or approximately CDN $567 million in
aggregate) to unitholders of record on November 28, 2000 to be paid on December
1, 2000. Of this amount, 87% or approximately CDN $493 million of the special
cash distribution will be received by Hollinger.
Hollinger's restructuring initiative launched in April of this year has
led to a number of sales that have been completed or agreed upon including the
asset sale to CanWest, sales of all of the UniMedia properties and sales of all
the U.S. community group newspapers (excluding the Chicago Group) generating
sale proceeds approaching CDN $4 billion, enabling Hollinger to eliminate its
bank debt and dramatically strengthen its balance sheet. The underlying
enterprise value of Hollinger's properties has been successfully demonstrated.
With respect to the newspaper assets sold to CanWest, Mr. Conrad Black
and his associates have entered into a management services agreement until at
least December 31, 2001 in order to ensure operating continuity. Hollinger will
continue, for at least 5 years, as the managing partner of the jointly-owned
National Post.
In addition to its interests in CanWest, 50% of the National Post and
other Canadian newspapers, Hollinger's assets include The Telegraph Group
Limited in Britain, the Chicago Sun-Times, The Jerusalem Post, a large number of
community newspapers in the Chicago area, the Southam Magazine and Information
Group and a substantial portfolio of new media investments. Hollinger L.P. (in
which Hollinger has an approximate 87% equity interest) continues to own the
UniMedia group in Quebec and a number of community newspapers in Ontario and
British Columbia.
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CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements made in this release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act").
Forward-looking statements include, without limitation, any statement that may
predict, forecast, indicate or imply future results, performance or
achievements, and may contain the words "believe", "anticipate", "expect",
"estimate", "project", "will be", "will continue", "will likely result" or
similar words or phrases. Forward-looking statements involve risks and
uncertainties which may cause actual results to differ materially from the
forward-looking statements. The risks and uncertainties are detailed from time
to time in reports filed by Hollinger International with the Securities and
Exchange Commission, including in its Prospectus and its Forms 10-K and 10-Q.
New risk factors emerge from time to time and it is not possible for management
to predict all such risk factors, nor can it assess the impact of all such risk
factors on the Company's business or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements a s a prediction of actual results.
FOR MORE INFORMATION CONTACT:
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JACK A. BOULTBEE PETER Y. ATKINSON PAUL B. HEALY
Executive Vice-President and Executive Vice-President Vice-President
Chief Financial Officer and General Counsel Hollinger International Inc.
Hollinger Inc. Hollinger Inc.
Tel: (416) 363-8721 Tel: (416) 363-8721 Tel: (212) 586-5666
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